Aave V3 adds Ripple’s RLUSD for lending and borrowing on Ethereum Core

Ripple’s U.S. dollar-pegged stablecoin (RLUSD) is now live on Aave V3 Ethereum Core Market, providing institutional and decentralized finance users with lending and borrowing services. The initial launch of RLUSD includes a supply cap of 50 million with a borrowing cap of 5 million.

According to data from Aave’s dashboard, the markets are not as active yet as expected. Both the reserve size and available liquidity are at $124.98, with the utilization at 0%. RLUSD’s price is still at $1.00, which is aligned with its U.S. dollar peg. There are no borrowings upheld; hence, the current APY stands at 0%, showing little activity and no lending promotions active.

Source: Aave dashboard

The integration is a significant milestone in RLUSD’s on-chain journey after it entered the broader market in December. Although, at present, the pool based on Aave remains partially unused, it creates future prospects for new DeFi applications when the pool activity is higher.

Growing demand signals RLUSD’s enterprise momentum

RLUSD has reached a $294 million market capitalization due to increased trading and international partnerships. The trading volume in the last 24 hours is $33.1 million, as per the data from CoinMarketCap. After its launch, RLUSD has achieved more than $10 billion in total volume transactions, drawing attention to investors’ growing interest.

Unlike many stablecoins targeting consumers, RLUSD is focused on business-level applications. Ripple incorporated the stablecoin into its Ripple Payments at the beginning of April, intensifying its use in cross-border transactions. By prioritizing the efficiency of payment settlements, RLUSD is designed to serve as the stablecoin for institutional players.

Its recent listing on the Aave V3 protocol has introduced new collaterals in both crypto native and traditional finance trading. According to market analysts, this could lead to increased usage once incentives, liquidity mining programs, or interest-based structures are initiated.

Exchange listings and cross-platform support fuel ecosystem growth

The increasing number of listings in the RLUSD reinforces Ripple’s objective of making its services available to users globally. Currently, it is integrated with advanced trading platforms such as Kraken, LMAX Digital, Bitstamp, Bullish, and Zero Hash. These listings enable institutional and retail users to transact in RLUSD through several financial market platforms.

Ripple has also hinted at continued engagement with institutions to ensure more issuance of the stablecoin. According to this plan, the company wants to integrate RLUSD into various decentralized and centralized applications. This will expand its use case beyond payments and into lending, trading, and DeFi services. Ripple’s steadily expanding RLUSD now faces the rising stablecoin market.

The Aave V3 listing can be viewed as part of Ripple’s gradual expansion into the DeFi space. In early March, Aave introduced its lending protocol to the Sonic network, formerly referred to as FTX. The deployment coordinated by Web3 contributor BGD labs was assessed by Chaos Labs and LlamaRisk and backed by Chainlink oracles for pricing reliability.

While the Sonic expansion is for the faster execution of DeFi, the integration of RLUSD provides a more grounded tier of institutional utility in line with Ripple’s long-term product vision. Both of these indicate Aave’s plans to expand to multiple chains and Ripple’s willingness to integrate its stablecoin into existing DeFi protocols.

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